Debt servicing is Nigeria's greatest risk - AfDB

AfDB President, Dr Akinwunmi Adesina said this at the country's first Annual National Tax Dialogue.

Inclusion Times
Inclusion Times

The African Development Bank (AfDB) has warned that Nigeria's current debt servicing obligations pose the greatest risk to the country's economy.

AfDB President, Dr. Akinwunmi Adesina sounded the note of caution at the country's first Annual National Tax Dialogue in Abuja organised by Nigeria's Federal Inland Revenue Service (FIRS).

Panelists at Nigeria's 1st Annual Tax Dialogue, including Lagos State Governor, Babajide Sanwoolu. Image Source: Encomuim Magazine
However, Adesina emphasized that to mitigate this risk, "taxes must form a significant percentage of government revenue” in Nigeria.

He further noted that “digitalization of tax collection and tax administration is critical to ensure greater transparency of the tax system, widening of the tax base, while mitigating compliance risks and encouraging voluntary tax compliance.”

Meanwhile, Ekiti state Governor Dr. Kayode Fayemi called for the interrogation of “how Nigeria can further deepen the use of technology to improve tax compliance nationally and across subnationals.

Executive Secretary, African Tax Administration Forum (ATAF), Mr. Logan Wort, in his own address, stressed the importance of technology in generating revenue for Nigeria in a post-COVID economy.

Nigeria In Focus:

Population: 206.6 million (Compared to South Africa's 59.6 million)

GDP: $504.57 billion (Compared to South Africa's $369.85 billion)

GDP Per Capita: $2,465 (Compared to South Africa's $6,193)

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